Crude oil fell 5 percent to settle below US$60 a barrel yesterday as the global economic slowdown weighed on the energy market.

Light, sweet crude for December delivery dropped US$3.08 to settle at US$59.33 a barrel on the New York Mercantile Exchange. It is the lowest settlement price since March 2007.

The tumbling US stocks weighed on the oil market as investors' worries over economic conditions worsened. Concerns about slumping energy demand has dragged the oil price about 60 percent down from its record high of US$147.27 a barrel reached in July this year.

The dollar rallied against the euro and other major currencies yesterday, which also contributed to the slide of the crude oil price.

In London, Brent crude for December delivery fell US$3.37 to settle at US$55.71 a barrel on the ICE Futures Exchange.